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Middle East Edition
2nd June 2026
 
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THE HOT STORY

Gulf job market faces turmoil ahead

The job market in the Middle East and North Africa (MENA) is expected to weaken significantly in 2026 due to ongoing regional conflicts, according to the World Economic Forum's Chief Economists' Outlook report. The report indicates that 74% of chief economists anticipate weak employment growth as firms delay hiring. Saadia Zahidi, managing director of the World Economic Forum, noted: "The longer the disruption lasts, the heavier the long-term cost for those who can least afford it." While Gulf Cooperation Council (GCC) economies show some resilience, job cuts may impact remittances and local labour markets.
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WORKFORCE

Saudization rate jumps to 70%

The Ministry of Human Resources and Social Development has announced a new policy to increase the Saudization rate in 12 procurement professions to 70%, effective May 31. This applies to private sector establishments employing three or more workers in these roles, including procurement manager and logistics manager. The ministry's inspection teams will monitor compliance, imposing penalties on non-compliant companies. The initiative aims to enhance job opportunities for Saudi nationals and align with the labour market strategy to support local talent and sustainable employment in specialised sectors.

Transguard Group's new leave policy rocks UAE

Transguard Group, a subsidiary of Emirates Group, has introduced adoption and guardianship leave for employees in the UAE, alongside its existing 85 days of paid maternity leave. This policy, announced on Global Day of Parents, aims to support diverse family structures. Rabie Atieh, chief executive of Transguard Group, stated: "By extending our support beyond maternity to include adoption, we are recognising the many ways families are formed." The new leave applies to all eligible employees who have completed their probation period, reflecting a growing trend among UAE companies to enhance family support policies.

Ajman introduces groundbreaking employee benefits

Ajman has enacted a new law, effective from September 1, 2026, that introduces various employee benefits, including new types of leave and reduced working hours. The law, issued by Sheikh Humaid bin Rashid Al Nuaimi, applies to all civilian employees in government entities and senior management. It offers leave for family care, self-employment, and support for persons with disabilities. Additionally, it allows reduced hours for pregnant employees and those with multiple children. The law aims to enhance government performance and promote family stability, aligning with the "Year of the Family" objectives.
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REMOTE WORKING

Remote work stifles youth employment

The Federal Reserve Bank of New York's recent study reveals that the rise of remote work since the pandemic has led to increased unemployment rates among young college graduates. The study found that the jobless rate for graduates in "remotable" jobs rose by about 1% from 2017-2019 to 2022-2024, while older workers saw a slight decline. The reluctance of businesses to hire inexperienced graduates for remote roles stems from challenges in training and mentoring. The study concluded that remote work accounts for nearly two-thirds of the rise in unemployment for young graduates since the pandemic, with the authors stating: "Remote work has weakened incentives to hire young workers by impeding on-the-job training."
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TRAINING & DEVELOPMENT

Bahrain trains 1,600 in AI skills

The Bahrain Institute of Banking and Finance (BIBF) has trained over 1,600 Bahrainis in artificial intelligence (AI) since launching its initiative in 2025. This programme aims to enhance workplace productivity and decision-making across various sectors, including financial services and real estate. Dr. Ahmed Al Shaikh, chief executive of BIBF, noted: “Today, the challenge is no longer gaining access to technology, but knowing how to use it in ways that improve productivity.” The initiative is expected to reach around 2,000 participants by year-end, reflecting the growing demand for practical skills in the workforce.

Flyadeal celebrates cabin crew graduation

Flyadeal, Saudi Arabia's low-cost airline, celebrated International Cabin Crew Day by announcing the graduation of its 76th group of cabin crew. Twenty-five recruits from Saudi Arabia and Tunisia completed a seven-week training programme at the airline's Jeddah headquarters, focusing on safety and service. The cabin crew community now exceeds 700 professionals from 16 nationalities. Ghizlane Rabii, senior cabin crew services manager, said: "The graduation reinforces flyadeal’s dedication to nurture the next generation of aviation professionals." The airline emphasises diversity and investment in talent to enhance customer experiences.

Saudi students shine at Harvard

Seventy Saudi students were honoured at Harvard University for their achievements aligned with Saudi Arabia's Vision 2030. The ceremony, attended by Saudi Cultural Attaché Tahany Aleisa, recognised graduates from prestigious institutions like MIT and Boston University. Aleisa noted that these graduates studied fields crucial to the Kingdom's development goals, such as medicine, engineering, and business. The Custodian of the Two Holy Mosques Scholarship Program, launched in 2005, aims to send 70,000 Saudi students to top global universities by 2030, with the US being the primary destination.
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REMUNERATION

New wage protection system launched

Private sector employers registered with MOHRE must now treat the first day of each Gregorian month as the wage entitlement date for the prior month. Establishments must pay through the Wage Protection System or approved alternatives and show proof of payment. Compliance requires transferring at least 85% of total wages due by the deadline. Late payment triggers escalating action, beginning with electronic notices, then work permit restrictions, fines, reclassification, labour disputes, prosecution referrals, wage collection measures, asset seizure and travel bans in specified cases.
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LEGAL

Corruption crackdown: 160 arrests made

The Oversight and Anti-Corruption Authority (Nazaha) reported the arrest of 160 government employees for corruption in May. This action followed extensive inspections, with Nazaha conducting 2,365 tours across the Kingdom and investigating 480 employees. The arrested individuals, some released on bail, included staff from various ministries, facing charges of bribery and abuse of power. Nazaha stated: "These inspection tours resulted in the investigation into suspected cases." The authority aims to combat corruption effectively within government ranks.
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STRATEGY

Amdocs to cut 10% of workforce

Amdocs, an Israeli tech company, is set to reduce its workforce by 10%, affecting between 2,700 and 3,000 employees globally, including hundreds in Israel. This decision, led by chief executive Shimie Hortig, aims to transform Amdocs into a more flexible and efficient organisation in response to the demands of the AI era. The company has previously indicated plans for job cuts as part of a broader restructuring strategy to integrate AI capabilities. Amdocs stated: "Frequently adapts its activities to the opportunities and challenges in its business environment." The layoffs follow previous reductions in 2023 and 2024.
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ECONOMY

Egypt targets $6bn outsourcing exports

Egypt's Ministry of Communications and Information Technology aims to increase outsourcing services exports to $6bn in 2026, up from $5.2bn in 2025. Prime Minister Mostafa Madbouly and Minister Raafat Hindi discussed this target during a recent meeting. Hindi highlighted investment opportunities in outsourcing, mobile phone manufacturing, digital infrastructure, and data centres. The ministry is engaging with global outsourcing firms to support their growth in Egypt. Additionally, plans are underway to enhance mobile phone production and digital services, including the rollout of 5G and new telecom towers, to boost connectivity and exports.

Saudi exports rise, oil falls

Saudi Arabia's merchandise exports increased by 2.1% to SR1,170bn in 2025, while oil exports fell by 4%. The 2025 International Merchandise Trade Report from the General Authority for Statistics (GASTAT) revealed a significant 18.9% rise in non-oil exports, including re-exports. Imports also rose by 8.8% to SR949.8bn, leading to a 19.2% decrease in the trade surplus, which fell to SR220.2bn. China remained the top destination for Saudi exports, accounting for 14.6% of total exports, while King Abdulaziz Port in Dammam was the main entry point for imports.
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INTERNATIONAL

Japan's firms cut capital spending

Japan's largest companies decreased capital expenditure by 3.5% in Q1, despite record ordinary profits among manufacturers. The Finance Ministry's report revealed that capital spending, excluding software, fell during the three months ending in March. Overall capital spending remained flat compared to the previous year, missing economists' expectations of 4% growth. However, sales increased by 1.1% year-on-year, and current profits rose by 14.6%, exceeding forecasts. The report highlights growing uncertainty from the escalating situation in the Middle East, which clouds future growth prospects, said the Finance Ministry.

New visa rules threaten talent pool

Proposed changes to US student visa rules may hinder international graduates, especially Indians, from securing employment after their studies. Danielle Goldman, co-founder and chief executive of Build, noted that the US Department of Homeland Security plans to replace the current "Duration of Status" framework with a fixed admission period of up to four years. This change could limit students' flexibility in applying for Optional Practical Training and Curricular Practical Training. Goldman warned that the impact would extend to US employers, who may struggle to recruit skilled workers if immigration pathways become more restrictive.
 
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